Goldshore Resources Inc. has exercised its right to repurchase a 1% Net Smelter Return (NSR) royalty on all metal production from its flagship Moss G

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Goldshore Resources Inc. (GSHR:TSX.V; GSHRF:OTCQB; 8X00:FWB) has exercised its right to repurchase a 1% Net Smelter Return (NSR) royalty on all metal production from its flagship Moss Gold Project in Ontario for US$7,500,000. The consideration includes a US$5,500,000 cash payment and the issuance of 3,333,333 common shares at a deemed price of US$0.60 per share. Closing of the transaction is anticipated on July 21, 2025.

This move marks a key step in consolidating full ownership of the Moss Gold Project. “The buyback of the 1% NSR further consolidates the ownership of the Moss Gold Project where our team has unlocked significant value since the outlining of a strategic plan in June of last year,” said CEO Michael Henrichsen in a company news release.

Goldshore also confirmed that it has completed its final milestone payment to Wesdome Gold Mines Ltd., the project’s original vendor. The milestone payment comprised 12,500,000 common shares issued at a deemed price of US$0.60 per share, thereby fulfilling all commitments related to the acquisition of its 100% interest in the Moss Gold Project.

In parallel, the company has entered into an agreement to repurchase 1.5% of a 2.5% net profit interest (NPI) in the Moss Gold Project. Partial consideration for this repurchase includes 1,000,000 common shares at US$0.33 per share, and a future share issuance equal to US$300,000 based on the 20-day volume weighted average price (VWAP) four years after closing.

The NSR buyback follows a series of operational advancements, including a completed 21,292-meter winter drilling campaign. Highlights include 124.35 meters of 1.65 grams per tonne (g/t) gold in hole MQD-25-171 and the discovery of a new gold-mineralized shear zone at the Superion prospect, with intercepts such as 17.6 meters of 3.03 g/t gold in MQD-25-148.

In the news announcement, Michael Henrichsen, CEO and Director of Goldshore, said the company is making progress on multiple fronts as it develops the Moss Gold Project. “We continue to advance our resource growth initiatives, the economic study, and our permitting work in order to drive significant progress,” he stated. Henrichsen added that the 20,000-meter diamond drilling program produced “accretive results, including the discovery of newly discovered mineralized shears and the extension of known mineralization,” which are expected to have a meaningful impact on the company’s forthcoming Preliminary Economic Assessment. He also described the signing of an Impact Benefit Agreement Term Sheet with Lac des Mille Lacs First Nation as “a major step forward in our commitment to delivering long-term benefits to the community.”

Goldshore also reported signing an Impact Benefit Agreement (IBA) Term Sheet with Lac des Mille Lacs First Nation, signaling progress in stakeholder engagement. Henrichsen added, “We continue to advance our resource growth initiatives, the economic study, and our permitting work in order to drive significant progress in the development of the Moss Gold Project.”

The company’s interim financial statements and management discussion and analysis for Q1 2025 are available on SEDAR+.

Gold Demand Signals Strength Amid Rising Prices and Retail Interest

Recent developments in the gold sector have highlighted a growing divergence between physical demand and mainstream investor allocations. According to John Rubino in a May 26 report, while gold prices have experienced a significant run-up, “gold and gold miner ETFs seem to be an afterthought for the average investor.” He pointed out that implied allocations to gold have not yet reached levels seen during previous bull markets, despite strong performance. Rubino added that in contrast, physical demand has surged, with Chinese buyers and U.S. retail consumers showing enthusiasm. “Costco customers’ eagerness to put multiple ounces of gold on their store credit cards implies the kind of enthusiasm that could easily spread to equity investors,” he wrote.

In a May 27 video report, Goldfinger Capital noted that despite outflows from gold ETFs in May, underlying price action remained strong. The analysis described gold’s technical movement since April as a “healthy correction,” identifying the chart pattern as “very constructive bull market price action.” The commentary also observed that junior and mid-tier gold miners had begun to outperform the metal itself, marking a shift from previous underperformance earlier in the year.

Further illustrating retail demand, a May 28 update from VBL reported that Costco had imposed tighter restrictions on gold bar purchases amid rising prices and supply pressures. “Costco is imposing stricter limits on member purchases of gold bars as demand surges alongside record-high bullion prices,” the report stated. Pricing for 1-ounce bars had reached US$3,279.99, up from roughly US$2,000 nineteen months earlier. The retailer also applied daily purchase limits across its gold and silver offerings, including American Eagle gold coins and PAMP Suisse Lady Fortuna bars.

High-Grade Results and PEA Delay Backed by Analyst

Don MacLean of Paradigm Capital provided a positive assessment of Goldshore Resources Inc. in a May 15 research note, highlighting the impact of recent drill results from the Moss Gold Project in Ontario. He reported that the company’s now-completed 20,000-meter drill campaign was designed to expand resource ounces both within and adjacent to the conceptual open pit, targeting zones that had previously been classified as unmineralized or waste. MacLean emphasized that some intercepts extended beyond the current pit shell, indicating additional mineralized potential.

He focused on two notable holes drilled in the Superion zone, which returned high-grade intercepts. According to MacLean, hole MQD-25-175 intersected 9.45 meters of 6.02 grams per tonne (g/t) gold, including 2.45 meters of 22.2 g/t gold, while hole MQD-25-176 returned 13.05 meters of 2.3 g/t gold, including 3 meters of 9 g/t gold. These results extended the strike length of the Superion zone to over 100 meters. MacLean noted that “even small tonnages with significantly higher-than-average grades can have a material positive impact on project economics.”

Regarding the company's upcoming Preliminary Economic Assessment (PEA), MacLean wrote that while the study had originally been expected in the first half of the year, continued exploration success has made a delay to the second half prudent. He supported this decision, explaining that incorporating new data could improve the economics of the project. “That grows the ounces and decreases the waste strip ratio, a double positive impact to project economics,” he stated.

Pathways to Expansion: Strategic Priorities at Moss

Goldshore’s recent NSR buyback aligns with its broader strategy of increasing project value ahead of a Preliminary Economic Assessment (PEA) targeted for the second half of 2025. According to the May 2025 corporate presentation, the company’s resource growth efforts have yielded a current mineral resource estimate of 1.535 million ounces of gold at 1.23 g/t (Indicated) and 5.198 million ounces at 1.11 g/t (Inferred), effective as of January 2024.

A 20,000-meter drill program was completed with the goal of expanding the resource envelope within and adjacent to the conceptual open pit. Drill results and modeling indicate expansion potential both laterally and at depth, especially in areas such as the Superion and QES zones.

Goldshore also plans to develop a high-grade starter pit, expected to deliver expedited capital payback once production begins. Engineering firm G Mining has been engaged to conduct the PEA+ level study, with an emphasis on optimizing internal rate of return.

Infrastructure remains a key advantage. The Moss Gold Project benefits from year-round access to Highway 11, power at US$0.06 per kWh, and proximity to rail and ports, enabling the potential development of a district-scale mining operation. The company is advancing permitting through a strategic framework led by One-Eighty Consulting, supported by more than three years of environmental baseline data and two existing exploration agreements with First Nations.

Taken together, Goldshore’s consolidation of ownership, expanded drilling, permitting progress, and upcoming economic study reflect a multi-pronged approach to advancing Moss Gold through exploration, development, and de-risking.

Ownership and Share Structure

The company provided a breakdown of its ownership, where 6% of Goldshore is held by management and directors.  

Institutions own approximately 20% of the company. Strategic shareholders own 25% and include Lutry Investments, Brian Paes Braga and members of the SAF Group. 

The rest is with retail investors.  

There are around 343.45 million shares outstanding and the company has a market cap of CA$121.86 million. It trades in a 52-week range of CA$0.15 and CA$0.40.